LNG

JX LNG Canada, a privately held company registered in British Columbia, has proposed a fourth LNG export project for northern BC, adding to the already advancing LNG Canada, Cedar FLNG and another First Nation-led venture north of Prince Rupert.

The latest project proposed by JX LNG Canada is called the Summit Lake PG LNG Project and the developers have just filed to start the regulatory process.

The Summit Lake LNG venture is planned for the Caribou Region of BC and the liquefaction facility will be sited about 30 kilometres (19 miles) north of Prince George.

The Impact Assessment Agency of Canada (IAAC) and BC Environmental Assessment Office said they had started working cooperatively for the initial phase of the Summit LNG project's review.

Traditional territory

“The project will be located at the Hart North Industrial site. The site is located approximately 20km from the Lheidli-T’enneh First Nation Community, and within the traditional territory of the Lheidli-T’enneh First Nation,” said the developers JX LNG Canada.

“The project is preliminarily projected to utilize 250 hectares of land,” added JX LNG.

The company explained that a two-phase development is proposed with Phase 1 comprising the production of up to 1.35 million tonnes per annum of LNG.

The second phase would give an additional 1.35 MTPA of output for a total of 2.70 MTPA of LNG.

Commercial operations for Phase 1 are expected to commence in 2028, according to JX LNG’s initial filing for the Summit project.

At full build-out the project plans to process 355 million standard cubic feet per day of natural gas and was expected to operate for 30 years.

The Canadian and BC regulators have now invited  public comments and are setting up information sessions for those in the project area and Canada at large.

“You are invited to review the initial project description and provide feedback. A summary document, in English or French, is available on the project,” said the IAAC.

Review process

“Funding provided by the Agency is now available to help Indigenous Peoples and the public participate in the impact assessment process for the proposed Summit Lake PG LNG Project north of Prince George,” the regulator added.

The other three LNG export projects in northern BC are the soon-to-start industrial-scale LNG Canada venture, the Cedar LNG project involving Pembina Pipeline Corp. and the Haisla First Nation and the Ksi Lisims LNG Partnership project.

The Ksi Lisims LNG Partnership joint venture comprises the Nisga’a Nation, Rockies LNG and Western LNG LLC.

They are proposing a floating liquefaction and export plant near the port of Prince Rupert and have signed a 20-year sale and purchase agreement with the Shell subsidiary, Shell Eastern Trading.

Under the SPA, Shell will purchase 2 MTPA of LNG per annum from the Ksi Lisims project on a free-on-board basis in what was the first LNG offtake agreement executed by the Ksi Lisims venture.

That project plans to produce 12 MTPA at Wil Milit, located north of Prince Rupert and near the Nisga’a tribal village of Gingolx.

The Ksi Lisims LNG Partnership, a development joint venture of the Nisga’a Nation, Rockies LNG and Western LNG LLC for a floating liquefaction and export plant near the port of Prince Rupert in British Columbia, has signed a 20-year sale and purchase agreement with the Shell subsidiary, Shell Eastern Trading.

Under the SPA, Shell will purchase 2 million tonnes of LNG per annum from the Ksi Lisims project on a free-on-board basis in what is the first LNG offtake agreement executed by the Ksi Lisims venture.

The Ksi Lisims FLNG platform will receive feed gas from the prolific shale-gas basin of northeast BC. The venture proposes to produce 12 MTPA at Wil Milit, located north of Prince Rupert and near the Nisga’a tribal village of Gingolx.

Ksi Lisims LNG’s governance structure provides each project proponent, the Nisga’a Nation, Rockies LNG and Western LNG, with input into project development, management and operations.

Innovative

“The Ksi Lisims LNG project is an innovative development for North America” said Davis Thames, President and CEO of Western.

The project will use a floating production units built by Samsung Heavy Industries and an all-electric process technology developed by Black & Veatch.

“The strong fundamentals of our project have earned the confidence of some of the most established companies in the LNG industry. We look forward to continuing to work with Shell and our other customers as we move toward reaching a final investment decision,” Thames stated.

“Ksi Lisims LNG will play an important role in the long-term economic growth of the Nisga’a Nation and other nations with which we work and we remain committed to being good partners with them,” he explained.

Thames noted that the work with the Nisga’a Nation and Rockies LNG had produced a “unique value proposition” for customers.

Steve Hill, Executive Vice President of Shell Energy, said that LNG was a critical pillar of global energy security and global demand is set to increase in the years to come.

Diverse portfolio

“We are pleased to sign this agreement with Ksi Lisims LNG which will help Shell to continue providing diverse and flexible LNG supply to its customers,” Hill stated.

Eva Clayton, president of the Nisga’a Lisims Government said her people had been striving to grow economic opportunities.

“Ksi Lisims LNG is the cornerstone of a brighter future for our people. As the project continues to pick up momentum, evidenced by this agreement with Shell, the Nisga’a people are now able to envision the opportunity and prosperity that Ksi Lisims LNG will bring,” Clayton declared.

Ksi Lisims LNG said it was represented by international law firm Baker Botts LLP in the drafting and negotiation of the SPA.

“We’re proud to be working to deliver the world’s cleanest natural gas to markets that need it most,” said Charlotte Raggett, President and CEO of Rockies LNG.

“Canada is an ideal global energy supplier, producing the world’s most responsible and lowest-emission natural gas at the shortest distance from Asia in the Americas,” she added.

Kitamaat Technical Services Group (KTSG), a joint venture including the native North American Haisla First Nation and the resources of three leading industrial service companies, will be seeking to secure contracts and work in LNG projects in the western Canadian province of British Columbia.

KTSG was established by ServcoCanada, Novus Technical Services (Novus) and Well Services Group (WSG) to bring their combined expertise to emerging LNG projects in BC.

“A central tenet of KTSG is to work closely with the Kitimat community and in particular the Haisla Nation, who have occupied lands centred around Kitamaat Village for more than 9,000 years,” said KTSG.

KTSG said it was already supporting the Haisla Nation’s economic infrastructure by providing training for potential LNG supply chain jobs and would assist start-up businesses directly related to services required for contracts secured by the partnership.

Various projects

There are currently at least four LNG export projects under development in BC including LNG Canada led by Shell and the Cedar FLNG project pairing the Haisla First Nation with Calgary, Alberta-based Pembina Pipeline for the Douglas Channel project.

The Nisga’a people are behind a third project, the Ksi Lisims venture near Prince Rupert in BC in partnership with Rockies LNG Ltd and Western LNG LLC.

“The aim is to be the leading energy services organisation in BC with strong international LNG experience, supported by a balance sheet allowing major contracting opportunities to be undertaken which directly benefit the economy of North-Western British Columbia, local First Nations and the wider community,” KTSG explained.

The KTSG contracts and work venture will benefit from the experience of companies like ServcoCanada, already a well-established Kitimat-based business with a 30-year pedigree of providing electrical and instrumentation, mechanical, piping and structural and facility shutdown and maintenance services across Canada and the US.

Infrastructure

Novus is an international provider to the energy and infrastructure sectors which employs more than 10,000 staff in Canada, US, Europe, Middle East, the Caspian and China working on behalf of some of the world’s largest operators.

WSG is a process, pipeline and industrial services specialist and the leading provider of UK and European refinery and LNG terminal services with extensive experience in the Australian LNG market.

KTSG said it was actively bidding for a range of pre-commissioning, commissioning and operations and maintenance contracts on the LNG Canada project under construction at Kitimat and which when completed will export an estimated 14 million tonnes of LNG per annum.

“The LNGC project will transform Canada’s energy producing capabilities and be a major contributor to the local and national economy,” said John Gordon, a spokesman for KTSG and President and Chief Executive of ServcoCanada.

“We believe the combined resources, expertise and successful track records of KTSG’s three partner companies can play an important role in the success of this ambitious development,” explained Gordon.

“From the outset we understood the importance of working with the Haisla Nation, and that creating employment opportunities and supporting indigenous entrepreneurs who could play a role in the supply chain, was just as important as any financial benefits which may accrue,” he stated.

“We are delighted that the Haisla Nation are partners and shareholders in KTSG and we look forward to learning from their vast local knowledge and working together to create sustainable long-term opportunities for their people,” Gordon added.

A fourth LNG plant is being built further south in BC called the Woodfibre project and run by Asia’s Pacific Energy Corp.

The Woodfibre facility is being constructed about seven kilometres from the town of Squamish and 70km north of Vancouver on the brownfield site of a former mill.

This project is giving hiring priority to qualified Squamish First Nation members first, then Squamish residents followed by people from the rest of BC and Canada.

A third large-scale LNG export joint venture is being considered based on previous projects discussed since 2015 and has been outlined by a First Nation representative at a council meeting in the city of Terrace located near the Skeena River in northern British Columbia.

Rockies LNG, a firm set up by a group of Canadian natural gas exploration and production companies, is considering developing its own barge-based export project on the Pacific Coast of British Columbia as an outlet for abundant gas resources.